How the Irish housing crisis is affecting you
At OneBigSwitch we work hard to get better prices on household bills for homeowners and householders. We, like many other businesses in Ireland, depend on the next generation of citizens being able to buy or rent a home. Therefore, we get worried when we see our housing crisis getting worse.
Housing crises are not unique to Ireland, many countries have them. The causes are complex and varied, but here are some facts about the situation in Ireland:
- The number of homes in Strategic Housing Developments that have been stalled or blocked by judicial reviews last year jumped more than tenfold. In Dublin, the number of potential homes stalled by judicial review jumped from 508 in 2019 to 5,802 in 2020.
- Home ownership rates amongst 25-39 year olds in Ireland has almost halved from 22% to 12% over the last decade.
- The Government’s “Rebuilding Ireland” plan from 2016-2021 was to deliver 150,000 new homes. Only about 84,000 homes have in fact been built. The pandemic hasn’t helped the builders, but we still have more and more young people who need homes.
- Many local authorities in Ireland have “locals only” rules. This makes it very difficult to build a home in certain counties if you are not local. We are free to live wherever we want within the EU but still face restrictions inside our own country.
At first glance building fewer houses might make sense, fewer houses means the value of existing houses will go up in the shortage. Simple supply and demand, and great for existing homeowners. But we need to be careful, the implications of not being able to provide homes for the next generation could be serious and destructive to our society. If it is easier to find a home in Germany, Canada or Portugal we may once again lose much of our educated youth to emigration.
How are the next generation in your family coping with the housing shortage? Have your adult kids moved back home with you or just left the country? Let us know what you think in the comments below.
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